Ifci Vencap Arm In Talks For $50 Million Fund

The company has signed on Louise Williams, a consultant based in the US, to identify a US based firm for a strategic alliance with IVCF. A memorandum of understanding (MoU) has also been signed with Williams for the purpose.

Turnaround of sick and underperforming companies was also identified as an unexplored investment opportunity in the country and IVCF proposes to explore the possibility of tying up with an overseas partner to float a turnaround fund.

The IVCF board has decided that future thrust in the operations of the company should be in the area of managing venture funds and other non-fund based activities. The dedicated IT fund, the company hopes, will also make the company competitive and profitable.

 

Detailed discussions have also begun with venture capital companies which have shown a preliminary interest in jointly managing this venture fund.

Even as talks are on with the US major for the fund, IVCF has initiated a number of steps to widen its income base.

IVCF has also been approached by various state governments for launching, structuring and management of their IT dedicated funds, including the states of Uttar Pradesh, Punjab, Delhi and West Bengal.

Already, the assignments relating to Delhi and Punjab have been completed and both the states have launched their IT dedicated funds.

IVCF has also initiated work of launching a dedicated fund for the food processing industry. The proposed size of the venture fund for the food processing sector is Rs 40 crore and a tenure of 10 years for investment in opportunities in technology-driven agro-tech areas.

The contributions to the fund are proposed to be raised from government agencies, financial institutions, and other institutions associated with the industry and the private sector.

On the turnaround fund, IVCF would propose a model whereby the overseas partner would leverage IVCF's standing as a venture capital company in India and in turn IVCF in turn would learn from its specialised knowledge on turnaround.